Correlation Between PT Bank and Alliance Resource
Can any of the company-specific risk be diversified away by investing in both PT Bank and Alliance Resource at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PT Bank and Alliance Resource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Central and Alliance Resource Partners, you can compare the effects of market volatilities on PT Bank and Alliance Resource and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PT Bank with a short position of Alliance Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Alliance Resource.
Diversification Opportunities for PT Bank and Alliance Resource
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PBCRF and Alliance is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and Alliance Resource Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliance Resource and PT Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PT Bank Central are associated (or correlated) with Alliance Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliance Resource has no effect on the direction of PT Bank i.e., PT Bank and Alliance Resource go up and down completely randomly.
Pair Corralation between PT Bank and Alliance Resource
Assuming the 90 days horizon PT Bank is expected to generate 1.89 times less return on investment than Alliance Resource. In addition to that, PT Bank is 1.86 times more volatile than Alliance Resource Partners. It trades about 0.03 of its total potential returns per unit of risk. Alliance Resource Partners is currently generating about 0.09 per unit of volatility. If you would invest 2,242 in Alliance Resource Partners on August 20, 2025 and sell it today you would earn a total of 183.00 from holding Alliance Resource Partners or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Central vs. Alliance Resource Partners
Performance |
| Timeline |
| PT Bank Central |
| Alliance Resource |
PT Bank and Alliance Resource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Alliance Resource
The main advantage of trading using opposite PT Bank and Alliance Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Alliance Resource can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alliance Resource will offset losses from the drop in Alliance Resource's long position.| PT Bank vs. Erste Group Bank | PT Bank vs. Postal Savings Bank | PT Bank vs. Lloyds Banking Group | PT Bank vs. ING Groep NV |
| Alliance Resource vs. Whitehaven Coal Limited | Alliance Resource vs. Peabody Energy Corp | Alliance Resource vs. New Hope | Alliance Resource vs. Natural Resource Partners |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |